Monday, May 11, 2009

What did we get for $15+ billion

"For General Motors Corp., the task at hand is so difficult that experts say a Chapter 11 bankruptcy filing is all but inevitable. To remake itself outside of court, GM must persuade bondholders to swap $27 billion in debt for 10 percent of its risky stock. On top of that, the automaker must work out deals with its union, announce factory closures, cut or sell brands and force hundreds of dealers out of business - all in three weeks."

http://www.miamiherald.com/101/story/1041488.html

Why did we spend more than $15 billion in public funds for this outcome?

GM could have filed bankruptcy $15 billion ago, and ended up approximately in the same place (and we taxpayers would still have our $15 billion).

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